Niranjan Lal Jindal Vs ITO (ITAT Kolkata)
The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) partly allowed the appeal filed by the assessee for AY 2017-18 and reduced the estimated profit rate on undisclosed turnover from 8% to 2.5%.
The assessee was engaged in the business of jute bags. During the proceedings, it was submitted that the assessee had disclosed turnover of Rs.6,21,06,328 under the name “Jindal Supply Company.” However, the assessee was also carrying on another business under the name “Goel Agro Business,” having turnover of Rs.12,69,82,201, which had remained suppressed. The Assessing Officer detected the undisclosed transactions and estimated profit on such turnover at 8%, which was brought to tax. The CIT(A) did not grant any relief to the assessee.
Before the Tribunal, the assessee submitted that in the case of the assessee’s brother, decided by the Coordinate Bench in Sri Mohit Jindal v. ITO for the same assessment year, profit on similar undisclosed turnover had been estimated at 1.25% instead of 8%. The assessee requested that the same rate be applied in the present case.
The Revenue contended that the entire turnover in question was undisclosed and therefore the estimation made by the Assessing Officer should be sustained.
